Apple Acquires PMIC Unit of Dialog

In a bid to get stronger in the production of chips for all computing devices starting from Mobile to PC and smart TV, Apple Acquires PMIC Technology in a deal said to be worth $600 million and over 300 Employees from Dialog Semiconductor, transfer certain of its assets and over 300 employees to Apple to support chip research and development.

Apple will pay $300 million in cash for the transaction and prepay $300 million for Dialog products to be delivered over the next three years. As part of the deal, Apple will take over Dialog facilities in Livorno, Italy, Swindon, U.K., and Nabern and Neuaubing, Germany.

Apple’s acquisition of British chipmaker Dialog Semiconductor for improving their IC business, now they are ready with 300 Dialog engineers already focused on Apple chip development - plus assets - and a $300 million prepayment for Dialog products to be delivered over the next three years. Announced as a partnership and technology licensing agreement, Dialog will have guaranteed contracts for products over the three-year deal.

The transaction is expected to close by the end of the first half of 2019, said Dialog. The company currently employs 2,100 people, so it will lose 16% of its workforce once the deal is done. At that point, Dialog expects to reduce operating expenses by about $35 million.

We believe that this transaction is in the best interests of our employees and shareholders who will benefit from a business with enhanced focus, strong growth prospects, and additional financial flexibility to invest in strategic growth initiatives,” said Jalal Bagherli, Dialog CEO, in a press statement.

After taking control over PMIC unit “Dialog has deep expertise in chip development, and we are thrilled to have this talented group of engineers who’ve long supported our products now working directly for Apple," said Johny Srouji, Apple’s senior vice president of hardware technologies.